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Study: $1.8 Billion In Reshipping Fraud With Stolen Cards Each Year
An anonymous reader writes: Researchers from the University of California, Santa Barbara and others studied the economy of how criminals monetize stolen credit cards by operating reshipping scams as means to cash out, KrebsOnSecurity reports: "A time-honored method of extracting cash from stolen credit cards involves "reshipping" scams, which manage the purchase, reshipment and resale of carded consumer goods from America to Eastern Europe — primarily Russia. A new study suggests that some 1.6 million credit and debit cards are used to commit at least $1.8 billion in reshipping fraud each year, and identifies some choke points for disrupting this lucrative money laundering activity. [...] disrupting the reshipping chains of these scams has the potential to cripple the underground economy by affecting a major income stream of cybercriminals. By way of example, the team found that a single criminal-operated reshipping service can earn a yearly revenue of over 7.3 million US dollars, most of which is profit."
Wow, that sounds even better than the other MLMs, tell me more!!
Lost at C:>. Found at C.
I read the whole summary and I still don't understand what the fuck they mean by reshipping or how the scam is being done.. Don't they know how to summarise properly anymore ?
Here it is in Google cache
If we really wanted to stop CC fraud, we could almost eliminate it. It's pretty simple, but we've abandoned this in favor of convenience.
The new credit cards in the US with chips are good, but why chip and signature? Why not chip and pin like much of the world does? Better yet, why not require two-factor authentication for large and online purchases where the card isn't swiped? If the purchase is large or the card isn't swiped, simply send a verification code to the customer's phone for that transaction that they have to enter. This is used for so many services now that are less sensitive than financial transactions, so why not use it for these as well? Even the "verified by Visa" program that required a password for online CC transactions seems to not be widely used.
Also, it's a different method of fraud, but a few months ago my CC was used to make a purchase from a fraudulent website. In this scheme, a transaction is made for a small amount of money, often less than $10, to a website that's not legit. In this case, the website is actually in on the scam. It was pretty obvious the website wasn't a legitimate business. The best thing that can be done is to do a chargeback and report the merchant to the CC processor, which in this case was Visa. If there are sufficient numbers of complaints against the merchant, who in this case is part of the fraud, they will be penalized and probably not allowed to make any more transactions. I provided my bank plenty of evidence that the merchant was fraudulent and asked them to do a chargeback, but they said they didn't want to bother and claimed it was simpler to collect insurance from the FDIC. It seems like merchants ought to be penalized when they're part of the fraud. It also seems like merchants that use poor security practices ought to be liable.
I'm convinced that there really isn't an interest in ending fraud, because the technology exists to make it far more difficult. We just don't implement it, which is frustrating.
So, how do I get a cut of this sweet action? Why do only foreigners be getting some?
I'm surprised this scam still works today. All of my cards automatically reject purchases where the shipping address isn't the billing address of my card. I can add addresses to the valid list, but I have to do it beforehand through their web site or through customer service. That should shut this kind of scam down.
Or the other obvious change of, instead of having the merchant charge my card, have me tell my bank/issuer to pay the merchant. Then the merchant never needs to know my card number and it's a lot harder for scam artists to operate.
To the music of Black Oak Arkansas "Jim Dandy To The Rescue".
I was a shit'n on a mountain top [Mountain View, California]
Watch'n turds betweenist my feet drop
Dens I Sees a runnaway Horse!
China Girl on it Of Course
Zucker-berg-er to da Res-Queue
Go Zucker-berg-er
Go Zucker-berg-er
Wuooooo
Ha ha :-D
in 20 years they'll be no petty crime outside of the poor stealing from the poor and the occasional white collar crook who manages to steal things legally Bain style. Software will eat the world.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
Most of the CCs that are stolen en-mass have 2 things in common:
1) the systems run Windows.
2) the company outsourced to India.
now some of you will say that it is not so , or that I am biased. Yet, nothing of the kind. Russians approach Indians and point out correctly, that the company that they work for pays them crap. In fact few make more than $9k / year. As such, Russian can offer them 90k to leave a back door. Once in, the Russian will clean it up and point elsewhere.
This will continue until western companies realize that security costs. First, do not run Windows( which will lower costs by switching off ), but then pay all the computer related decent salaries. You want them happy and not willing to hurt the company.
I prefer the "u" in honour as it seems to be missing these days.
I suppose, any sort of credit card scam can be linked that way. The credit system was introduced primarily to help people set up their business. Now it is a business in itself. Good Job Loan Sharks.
When you put these numbers in perspective with what is legally stolen from us, it looks ridiculous.
Article says "carded consumer goods from America to Eastern Europe — primarily Russia".
I don't think that Putin would like Russia to be seen as part of Europe. Look at the fuss that he made when Ukraine was getting too close to Europe.
Um, samzenpus, Russia is part of Asia you dipshit. God, you have got to be the stupidest motherfucker ever to be given an editor title at Slashdot.
You're exactly right, but the CC companies have little interest in ending fraud. Instead, they just pass along the costs. Think about it: it's actually kind of shocking that the credit cards collect a percentage of gross, i.e., the full purchase price on every transaction. In terms of processing, it doesn't matter if a transaction is for $5 or $500. This more than covers the costs of fraud, and the charge is ultimately passed on to the consumer.
Meanwhile, they impose very strict security requirements on the merchants, make the merchants pay not only the standard fees, but also transaction fees, the cost of the terminals (from certified providers, who pay fees), fees for required quarterly network security scans, etc, etc... Always another fee - and it all winds up in the price tag of the products.
In truth, Mastercard and Visa essentially hold a monopoly. They don't compete with each other, because all of the big banks are involved with both. If Google gets investigated over and over for anticompetitive practices, why do we never see an investigation by MC/Visa? It's long overdue...
Enjoy life! This is not a dress rehearsal.
See subject & "read em' & weep" Dave420 http://slashdot.org/comments.p...
* "EATING YOUR WORDS" != GOOD NUTRITION fool!
APK
P.S.=> How'd they taste, Dave420? Flavored with the "bitter taste of SELF-defeat", & washed down with your FOOT IN YOUR MOUTH ramming them down?? LMAO @ U, fool... apk
After all, is it illegal, if the prosecutor will not charge the criminal? I have heard of many of the reshippers go to jail, for arrest. But i have never heard of one getting jail time of more then a year, for doing it. Felonies go to jail for 30 days. Murderers go to jail to be bonded out and never prosecuted. Credit card stealers, get a slap on the wrist, and i bet if i got caught jwalking it would be a year in jail. So it must not be illegal.
Foreigners taking all the good American jobs. We used to dominate the Organized Crime sector of the economy, but now the real crime innovations aren't coming from the New York regional crime labs of the old days (AKA "Sicilian Valley").
We've lost our edge.
Pretending this is my office full of bitter coworkers..
The credit card companies should ask people if they want to lock down their credit cards so that they can't be used to purchase items being shipped to addresses different than their billing addresses without their ok.
If you get fraud on your card FDIC should pay you 3 times the amount for your trouble.
Want to see it all go away very fast.
I live in Russia and I think that this information is not completely true. Please note that $1.8 billion is a lot of money. What can I see here is that this service is not offered to a general public. It is not advertized, I knew nothing about it before reding this article.
That means that the situation when many Americans are constantly sending things to many Russians is very improbable. What are the alternatives?
They can send these goods to few companies or persons which later resell them in Russia. But here comes Russian customs service that tracks packages from abroad. And in this case it is technically difficult to bribe them, because there is no single customs officer who is responsible for all those packages.
Thus, two possible scenarios, when many people send packages to many people and when many send to few are improbable (however not impossible).
See subject + this link http://slashdot.org/comments.p...
So, how do I get a cut of this sweet action? Why do only foreigners be getting some?
You referring to the "Reshipping profits action", or the "black penis" action? ;-)
Well, don't you worry none, son. You go for one, you get the other "action" too, eventually.. no charge. They a package...